Israel considers the Islamic State (ISIS) more of a world menace than a direct threat to the Jewish state, Danny Danon, a Likud party member of the Knesset and former deputy minister of defense, tells Newsmax TV.

"They are not a threat to Israel. We know how to deal with them," Danon said Friday on "The Steve Malzberg Show," referring to the radical Islamist group, which has been on a bloody campaign across the Middle East to establish a huge caliphate.

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"Until they're gaining better equipment, better technology and they can attack many targets — not only the Sinai — we are prepared ...

"It's more of a threat to the Arab countries and regions. That's why it's a global issue that we have to face together with other nations."

Much more dangerous to Israel, for now, is Iran, which this week inked a nuclear-arms limits deal with the U.S. and other world powers in exchange for economic sanctions being lifted — an accord condemned by Israel.

"Prime Minister [Benjamin] Netanyahu is saying the truth, we are not happy with the agreement. You have to look at the history of Iran to understand what they are going to do with the money [gained from the lifted sanctions]," Danon told Malzberg.

"They are funding terrorist activities, they are funding Hezbollah, they are funding terrorist cells in the Sinai Peninsula, in Gaza, and even when you look at the bombing of the Israeli embassy in Argentina, you can make the connection … [to] the funds that came from Iran.

"So yes, we are worried about it, we know that the money will go back to the terrorist organizations, they will buy weapons, and it will be very hard for us to face these challenges … We are not part of this agreement, and we will do whatever is necessary to protect our people."

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